Interesting article about Oil

wanghong

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Below is an Interesting article I found, which says that.....Do not
, r1 ^( I0 c+ E6 w0 S2 _expect much from Crude Oil producers and future is not with the
2 p  i# }/ r6 I# }$ @2 Qcompanies producing Jet fuels but Biofuels. Also no wonder if some of
these oil producer will go bankrupt or out of the business even if
4 }% f  o3 a# bcrude prices improves. This implies also to good names such as Shell,
( v" A! y- w! j# a; b1 `6 X" N' C2 v4 nEXXON, BG, BP, Cheveron ....xyz.. oils
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; A; B# [3 E5 b0 ]+ }Recently OPEC reduced crude oil production twice over just a few
months. There are three wars going on in Gaza, Iraq and Afghandistan.
A year ago these things would have spiked the price of crude oil by at
least $50.00 per barrel. Today, oil price declined by a record amount.

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There are several reasons the price of oil is decreasing in the face
( R- d7 F3 G* Zof so much news. These reasons are:


1. New oil has been found in Canada, Montana, North & South Dakota and
in the ocean near Brazil. Each of these oil fields has more oil than
, N8 c. U& p' x0 _2 Y6 z9 HArabia.

+ b% U2 p: V& O6 G
; U. G$ ]+ F2 S2. New natural gas has been found in Pennsylvania and West Virginia.
) L4 J  \+ g5 R1 F7 T7 `. mThis is the largest find in North America.
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3. New methods of injecting CO2 and surfactants into oil wells is
0 p9 Y6 s0 }& S5 a3 r& ubeing used to double their output.


0 n3 i6 U7 E) l, Q, Z' Y( |4. Production of bio-fuels is beginning to reach critical mass. Bio
. c# T/ V6 |1 w: S  s, m, h( I2 dfuel is being produced from many plants and algae. The production
9 F. b$ K( x3 t# c" ]* Z% Cpotential per acre in some cases is astounding. Many countries are
racing to produce bio fuels.
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5. Virtually every restaurant in the US and all food processing plants
are now selling their used oil to bio-diesel producers. Every pork,
) ^# H9 s) P( S6 X0 A5 }cattle, turkey and chicken processing plant will soon sell their fat
0 B! Y% t  c2 f# ]* Dto bio-diesel producers. One pork processing plant in Oklahoma is
producing 30,000 gallons of bio-diesel per day from pork fat.

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6. There are 99 nuclear reactors in various stages of planning and
construction around the world at this time. Several hundred more are
% x7 [4 a9 K% p4 p' Lexpected to be built in the future. Much of the energy they produce
4 W7 h( ]- m* |: h5 ^& ~' hwill replace oil.

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7. Every company in any form of transportaion business is replacing
1 a; T: x, I$ I! p4 @  m0 Kolder equipment such as trucks, airplanes, train engines, ships, etc.
with new more fuel efficient equipment. Airlines and railway companies
( Q5 y0 J% D* |are experiencing 20% to 25% better fuel econony with the new
equipment.


% {" _  P0 n- b" C: [2 ^- KAirlines are flying airplanes with bio-fuel. They are finding the bio-
fuel is cleaner and performs better than jet fuel.
  {/ c/ G" S$ v7 Q# ^  r" _

8. Cities and counties throughout the US are selling the rights to
) f4 _1 Y9 e6 D  G, Qcapture methane gas from landfills. This is a huge source of gas
- K6 y: [: O7 ]& T8 P/ vavailable at very little cost or risk. The gas is displacing crude
oil.
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+ d* ~7 t$ N( r: \
  @5 A3 p9 {7 z$ x9 g9. Coal is being transformed into a clean burning liquid fuel. The CO2
' ]+ d% x1 [  Qproduced as a byproduct is sold to oil companies for injection into
* m. K# e% b9 y; Y$ u2 Noil wells.
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10. Solar, wind and ocean energy is displacing oil as an energy
4 ?! q6 r3 {8 t3 d& zsource. Three new wind turbines are being erected every day in the US.


Each of the above by itself will not make a large difference in the
price of crude oil but the sum of all of them together is world
+ {- u3 ?8 m% T/ J6 C0 h4 ochanging. The important thing is that OPEC no longer has the ability
to control oil prices.

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With the above scenario, I still believe that there are under
4 k- c, l+ C* p3 X- zperformed OIL companies and probably they are yet to get the justified
9 }2 E( a4 ]! bvalue .....
IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
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The above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only